Any investor knows that a strong portfolio contains a mix of high-growth investments that build wealth alongside income investments that supply steady streams of money. Many investors achieve this blend through a combination of growth stocks and income stocks, but this cocktail ignores the incredible value offered by single-family rental investments. Single-family rental homes in certain parts of the country offer all of the benefits provided by dividend-paying stocks, and provide additional upsides those stocks can’t match.
While some investors find real estate investing intimidating, it offers the possibility of consistent yields and provides a stable base for a diverse investment portfolio. HomeUnion® makes it simple for investors to enter the expanding SFR market.
The power of leverage
Everyone appreciates a deal, and real estate investing allows investors to do more with a set amount of money. Real estate investments can be financed, so an investor can use a fixed amount of money toward the down payment on several different properties and borrow additional money from the bank to purchase properties worth much more than the actual amount they have available. This provides higher monthly returns because these properties have higher returns than the cost of interest on the borrowed money, and it allows the investor to spread his or her money across several markets. This will insulate an investor from instability in any one location.
The value of the tangible
Real estate remains relatively removed from the market fluctuations that can grip the stock market, and this makes it a great source of consistent income. As a tangible asset, real estate’s value is less contingent on investor whims. The need for housing is constant, so a home will always maintain a certain level of value. In the best markets, the increasing demand for housing is driving rental rates to new highs. in 2014, RealtyTrac discovered SFR investments delivered an average return rate of 9.06 percent across nearly 600 U.S. counties. By specifically selecting properties in areas with low housing inventory compared to housing demand, investors can boost returns even higher.
It can be easy
Traditionally, many investors avoided real estate investing because it required continued involvement and upkeep. That’s no longer the case, as HomeUnion® removes the burdensome elements of real estate investing, and makes it easy for people around the globe to enter the SFR market. Those who register on HomeUnion®’s website gain access to prevetted properties in great markets across the U.S. HomeUnion® selects these locations using a combination of deep data analytics and on-the-ground research. If you want to purchase a property, HomeUnion® can provide financing for U.S. residents and foreign investors through an in-house lender and will handle every element of asset and property management. This allows anyone to reap the rewards of SFR investments.